OfBusiness Flat Steel Dailies | 19th July 2023

Price

• The Flat Products market remained stable for the past two weeks. The Flat Steel offers in various markets are as follows:
• The HRC offers are below:
  • Ex-NCR/Delhi: Rs. 56,500/ton
  • Ex-Mumbai: Rs. 56,000/ton
  • Ex-Ahmedabad: Rs. 57,500/ton
  • Ex-Chennai: Rs. 58,500/ton
  • Ex-Kolkata: Rs. 55,000/ton
  • Ex-Hyderabad: Rs. 58,000/ton
• The CRC offers are below:
  • Ex-NCR/Delhi: Rs. 61,000/ton
  • Ex-Mumbai: Rs. 61,500/ton
  • Ex-Ahmedabad: Rs. 63,000/ton
  • Ex-Chennai: Rs. 64,500/ton
  • Ex-Kolkata: Rs. 62,000/ton
  • Ex-Hyderabad: Rs. 64,000/ton
• PM Plates prices stand at around Rs. 61,500/ton Ex-NCR/Delhi, and Rs. 61,000/ton Ex-Mumbai, respectively.

Demand and Supply

• The market is still anticipating a price rise, and developers are striving to close orders. The order books of primary suppliers are filled, which is affecting the delivery timeline for new orders. The availability of BO grade material is still experiencing a crunch as primary suppliers prioritize the rolling of BR grades to meet customer demands faster.

News

• India’s steel production is dominated by six major players: Tata Steel, JSW Steel, AM/NS India, JSPL, SAIL, and RINL. The top five players are strengthening their positions. By FY26, private sector players are expected to add 30mt capacity, and between FY26 and FY31, capacity addition could surpass 70mt. The industry is highly concentrated, with the top five producers accounting for over 55% of installed capacity. Expansion projects will raise their share to over 60%.

OFB’s Opinion

• The availability issue persists for BO grade material, with the primary focus being on rolling out BR grades to ensure a steady supply and reduce delivery timelines. Demand is expected to grow once the incessant rain stops and building activity commences. Primary suppliers are giving priority to lucrative export demands.